Classic Electrod

- FY '26 revenue expected between Rs. 260 to Rs. 275 crores with 15-20% year-on-year growth. - FY '27 projected to grow at a minimum of 20% over FY '26, potentially reaching Rs. 450-500 crores in 3-4 years. - Manufacturing revenue share expected to increase, with trading turnover dropping to less than 15% of total topline in 3-4 years. - Flux-Cored wire commercial production began end of September 2025; anticipated to contribute significantly by FY '27. - Flux-Cored wire at approx. 1800 MT p.a. capacity, with potential Rs. 30 crores revenue at 70-80% utilization and EBITDA margins of 20-25%. - Capacity utilization currently around 70-75%; efficiency improvements and automation to increase capacity and production timelines. - Expansion planned in South India (near Nagpur or Chennai) to tap underserved markets. - Demand outlook strong for next 2-3 quarters, driven by infrastructure, fabrication, and government projects.

- Classic Electrodes expects steady revenue growth, aiming to reach Rs. 450-500 crores in 3-4 years. - Introduction and scaling up of high-margin Flux-Cored wire is projected to improve overall EBITDA margins, with expectations of mid-teens EBITDA margin in the medium term. - EBITDA margins for Flux-Cored wire are 20%-25%, higher than electrodes (8%-10%) and MIG wires (10%-22%). - The company anticipates improved profitability due to a rising share of manufacturing revenue compared to trading, which boosts margins. - H1 FY '26 saw 6% growth in EBITDA and net profit; double-digit EBITDA margin is expected by FY '26 end. - Ongoing operational improvements, automation, and capacity enhancements aim to improve efficiency and margins. - EPS stood at Rs. 3.61 in H1 FY '26, with prospects for further growth in line with revenue and margin expansion.

- Classic Electrodes maintains running orders consistently due to its B2B and B2C distribution model. - Current B2C orders stand close to Rs. 15 crores. - Running B2B orders range approximately between Rs. 15 to Rs. 20 crores. - Order execution timelines vary between 15 days to 1.5 months, depending on product size and complexity. - The company has not heavily focused on exports yet but is exploring neighboring countries markets. - Flux-Cored wire, a new strategic product, is expected to significantly contribute to order inflow and revenue growth going forward.

- The transcript does not mention any current or planned new fundraising through debt or equity. - It highlights that the company is utilizing proceeds from a recent IPO, with around 60%-65% of the IPO funds already utilized. - IPO funds are being used for debt repayment and working capital to support growth and margin improvement. - No specific announcements or plans regarding additional fundraising via debt or equity were discussed during this call.

- Classic Electrodes is focused on growth plans involving de-bottlenecking and automation initiatives, particularly at Unit 1, supported by Rs. 1.5 crores from IPO proceeds. - A new manufacturing facility is planned for South India (near Nagpur or Chennai) to address market presence gaps, expected around FY '27. - The company aims to increase capacity utilization through operational improvements and automation. - Ongoing R&D efforts continue for portfolio upgrades and development of specialty, complex, and cost-effective electrodes. - Plans for future expansion are in the pipeline to support long-term growth initiatives leveraging their strengthened balance sheet post-IPO.